A subsidiary of Savage Companies will commence operations of its new petroleum transload terminal in central Mexico on January 1, 2018, with plans to significantly expand terminal capabilities later in 2018. Located near the city of Querétaro, the terminal is served by the Kansas City Southern de Mexico railroad and provides access to strategic ports and US-based refinery centers.

The Querétaro terminal will provide an optimal location for transferring and storing refined petroleum products. Initially, the terminal will serve manifest rail volumes, transferring products directly from railcars into trucks. Following permitting approvals, Savage plans to add tank storage and fixed facilities for high-speed rail unloading, product blending, and truck loading. At full build out the terminal will handle unit train volumes.

“We’re excited to leverage our team’s experience operating transload facilities and rail operations to reduce the logistics costs of moving and managing refined petroleum products in Mexico,” said Kirk Aubry, Savage president and chief executive officer. “Our strategic location and capabilities, together with our team’s focus on providing safe, efficient and reliable service, will enable customers to have a trusted partner in getting their products to market on time and on budget. We have a long history working with KCS and all Class I railroads, and look forward to working together with Kansas City Southern de Mexico to provide a world-class petroleum transload terminal in Mexico.”

KCS President and Chief Executive Officer Patrick J Ottensmeyer said: “KCS is pleased to provide rail services to the new Savage terminal in Querétaro. We have a long and prosperous relationship with Savage in the United States and we are honored to extend our mutually beneficial endeavors to Mexico, where we believe this terminal will facilitate additional refined product exports from US Gulf Coast refineries in support of Mexico energy reform. Savage’s experience and commitment to excellence gives us the confidence that this new refined products terminal will provide additional market options in support of Mexico’s new energy infrastructure.”